Sainsbury's boss: just boycott tax-avoiders like Amazon

Justin King says customers have more power than government to force multinationals to pay taxes

SAINSBURY'S boss Justin King has said consumers can force multinationals such as Starbucks and Amazon to change their tax minimising ways far quicker than governments – simply by voting with their wallets.

In an interview with Jeff Randall on Sky News, King (above) was asked about the row over corporation tax, which resulted last week in executives from Google, Amazon and Starbucks being dragged before MPs for a severe dressing–down.

"Can these multinationals keep getting away with it?" asked Randall.

King responded: "Corporation tax is, to all intents and purposes, an elective tax. Quite legally, companies can choose in which country they want to pay it."

Noting that Sainsbury's DOES pay its corporation tax, King added: "It's a customer issue. I think customers have got to be demanding of the businesses that they spend their money with. Ask whether they do pay their dues in our country; are they contributing to our society?"

Last week, Andy Street, managing director of John Lewis, told Jeff Randall that the Treasury must do something to tackle what the Sky business presenter framed as the "Amazon problem" or British companies will go out of business.

King poured cold water on Street's call for government action. "This is an international issue and if we wait for the government to get together with international governments to sort out this issue, we'll be waiting a very long time," he said.

"We as consumers can make this change much quicker than the government. The vote you make with your wallet is the most powerful vote you have at your disposal.

"If you send a clear message as a consumer to any business that you don't think it pays its dues in the UK you can bet your bottom dollar that they'll make a change very quickly."

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Starbucks operate in Sainsbury's - boycotts impact their employees - and trading standards give away Amazon gift vouchers to new members - it is a tangled web

Submitted by Graham Hepworth on November 24, 2012 - 1:07am.

I couldn't agree more with Justin King.

That said, these companies are not doing anything illegal; immoral, yes. As consumers we need to remember who has the power to decide how much we give to these Companies.The only real question is whether the consumer in us cares enough to do anything about it........

Submitted by gdcox on November 24, 2012 - 8:46am.

New name ....

Buckstax

Submitted by gdcox on November 24, 2012 - 8:49am.

There is a simple way to strike back.

20% withholding tax on all royalties and interest paid outside the UK by UK entities.

Its done for residential rent paid to foreigners (even requiring tenants to withhold and pay ) so why not corporate?

Submitted by Sergio Baddoreea on November 27, 2012 - 12:31pm.

If Justin KIng is so wooried about Starbucks Tax Avoidance practises, then rather than urge the public to boycott them, why not lead the way and kick them out of all Sainsburys stores in the UK. Sainsburys stores are littered with Starbucks and he happily takes there rental monies.